Local Governance Anti-Corruption & REDD in Latin America and the Caribbean.

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Presentation transcript:

Local Governance Anti-Corruption & REDD in Latin America and the Caribbean

Objectives How LAC countries tackle corruption at the sub- national level Extract lessons learned from the case studies How best practices can be applied in the REDD+ context

VulnerabilityCorrupt Practices Dispersed control over finances Fraud via embezzling or skimming Freedom to hire and fireCronyism,clientelism or nepotism Proximity with constituency Bribery, fraud Patronage NetworksState capture, bribery, fraud Lack of capacity and oversight Petty corruption Corruption at the Sub- National Level

Structure Corruption in the Forest Sector and REDD+ Lessons Learned from Case Studies: Brazil & Bolivia Recommendations

Corruption in the Forest Sector Harvest/processing (e.g. illegal logging) Transport (e.g. timber/wood products without permits) Trade (e.g. avoidance of taxes/forest charges)

Corruption in the Forest Sector StageCorrupt Practices Regulatory Design Undue influence on forest laws and regulations Harvest/Processing Bribery of local officials to harvest without permits, obtain logging permits, ignore over- harvesting Transport Bribery to allow transport of illegally logged timber Trade Bribery to export wood products without permits, avoid taxes, money laundry

Corruption & REDD REDD+ design & implementation Land administration Carbon Rights & Measurement Benefit & Distribution Systems

Corruption & REDD+ REDD+ Design Land Administration Bribery to ensure that land areas are allocated to or excluded from REDD+ Failure to recognize competing rights or customary land tenure Carbon Rights & Measurement Link carbon rights to State ownership of forests Artificially inflate baselines Benefit & Distribution Systems State capture, nepotism& cronyism

Corruption & REDD+ REDD+ Implementation Land Administration Bribery to fraudulently create land titles Bribery to include land areas in REDD+ Carbon Rights & Measurement Bribery to register carbon rights over particular lands in the name of corrupt actors Over-estimate the amount of emission reductions to inflate REDD+ revenues Benefit & Distribution Systems Sell the carbon rights without the consent of the indigenous people

Structure Corruption in the Forest Sector and REDD+ Lessons Learned from Case Studies: Brazil& Bolivia Recommendations

Brazil: State of Amazonas

BolsaFloresta

BolsaFloresta Partners

Anti-Corruption Measures BolsaFloresta External Audits: PricewaterhouseCoopers Portal daTransparência (Decree 3195/2011)

Structure Corruption in the Forest Sector and REDD+ Lessons Learned from Case Studies: Brazil &Bolivia Recommendations

Bolivia

Decentralization Popular Participation Law (1551/1994) Administrative Decentralization Law (1654/1995) Forest Law (1700/1996)

Anti-Corruption Measures Single concession fee US$ 1 per hectare Transparency & independence of ABT Forest Monitoring

Anti-Corruption Laws Anti-corruption Law 004/2007 Decree 28168/2005 access to information & transparency Ministry against corruption

Lessons Learned Good practices are instrumental in preventing corruption Specific anti-corruption laws and bodies are less common at the sub-national level Local bodies in charge of environmental control have a role in suppressing corruption Local & indigenous communities participate more actively in forest administration

Structure Corruption in the Forest Sector and REDD+ Lessons Learned from Case Studies: Brazil & Bolivia Recommendations

Key Recommendations Sub-National Governance Awareness & understanding about REDD+ and related corruption risks Policy dialogue on financial resources for climate change, forest management and REDD+ Capacity building for local decision makers and civil society Accountability and transparency in decision-making

Key Recommendations REDD+ Design Phase REDD-specific anti-corruption risks Local governance institutions REDD specific anti-corruption measures Anti-corruption proposals in National Strategies

Key Recommendations REDD Implementation Local governance institutions to detect and suppress corruption Local and indigenous communities and civil society Transparency in decisions on resource use and distribution, as well as climate change, forest management and REDD+ policies Use of UNCAC and IACAC as guide to develop anti- corruption frameworks

Anti-Corruption Checklist 1. Identify Corruption Risks What are potential REDD-specific corruption risks? What are the sectors involved?

Anti-Corruption Checklist 2. Design Anti-Corruption Measures What measures are required? Which institutions could carry out such measures? What is the role/functions of those institutions? What will be the relationship between national and local governance institutions? How existing laws, policies and mechanisms could be used? How could civil society, local and indigenous populations be involved? Are the designed anti-corruption measures too complex or costly? How to finance those measures?

Anti-Corruption Checklist 3. Implement Anti-Corruption Measures How to ensure compliance with anti-corruption measures? How to evaluate whether anti-corruption measures are effective? Can the effectiveness of such measures be assessed through the IACAC Follow- up Mechanism? How to report/inform the public about the measures taken?

Thank you Contact Information Beatriz Garcia, Ph.D. REDD Forests